- Litecoin price was due for a massive upswing after slicing through the $211 resistance level.
- The market crash on September 7 undid the previous week’s gains and currently shows no directional bias.
- The support level at $160.86 will make or break LTC for the foreseeable future.
Litecoin price has faced the brunt of the collapsing market as it sliced crucial support levels. However, LTC is currently above another key demand barrier, which will decide the altcoin’s near future, i.e., if it will head higher or lower.
Litecoin price hangs by a thread
Litecoin price rose roughly 40% between August 31 and September 5, clearing the $211 resistance level and flipping it into a support barrier. While this development opened the path to $294.21, the unforeseen market crash put a hole in the bulls’ plans.
As a result, LTC crashed 30%, undoing most of the gains seen over the past week. Now, Litecoin price is hovering above the $160.86 support level, which saw roughly five retests since August 12.
The market does not show a clear sign if the sell-off is over and that a reversal is in progress. Hence, altcoins could go either way, depending on what happens with the big crypto. Assuming the sell-off continues, a decisive daily close below $160.86 will create a lower low, adding to the investors’ bearish sentiment.
If such a move occurs, market participants can expect LTC to decline 10% to tag the immediate support level at $145.40 and the next barrier at $135.49.
LTC/USDT 1-day chart
On the other hand, if Litecoin price manages to bounce off the $160.86 demand barrier, it will face the $188.99 resistance barrier. A decisive daily close above this level will open the path to $211.
If LTC manages to flip this ceiling into a foothold, it will invalidate the bearish thesis and potentially trigger a 40% upswing to $294.21.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Will Dogecoin (DOGE) price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. However, the recent recovery above the range low looks promising and hints at an explosive move for next week.
SEC Chair Gary Gensler’s latest call signals tough times ahead for crypto players
US Securities and Exchange Commission (SEC) chair, Gary Gensler, has hinted at tough times ahead for crypto players. In his testimony before the House Appropriations Subcommittee on Financial Service and General Government, Gensler advocated for additional infrastructure.
Crypto firms' de-banking escalates as banks reject applications due to liquidity and regulatory concerns
The crypto market has been facing hurdle after hurdle since Q2 2022 when Three Arrows Capital collapsed, which worsened in November 2022 following the bankruptcy of FTX. This led to a number of crypto companies falling.
Making a case for Binance Bicasso NFTs playing catalyst to BNB price recovery, $357 incoming?
BNB price is up three days in a row despite the legal tussle between the largest exchange by trading volume, its CEO Changpeng Zhao (CZ), and the Commodity Futures Trading Commission (CFTC).
Bitcoin: Breaking down key BTC levels to accumulate for Q2, 2023
Bitcoin price shows an interesting outlook as the first quarter of 2023 comes to an end. BTC has shown strength since day one of 2023 and has netted investors approximately 70% in returns.